Gains will be driven by a recovery in construction activity -- especially the residential sector --
and by a turn-around in wallpaper, which has suffered from negative consumer perceptions.

US demand to rise 8.2%
annually through 2015

Demand for wall coverings is projected
to advance 8.2 percent annually from a
weak 2010 base to $2.2 billion in 2015.
Gains will be driven by a recovery in
construction activity, especially in the
residential sector. Demand for wall
coverings will also benefit from the turnaround
in the prospects for wallpaper,
which has suffered from negative
consumer perceptions and stiff competition
from paint and coatings.

Dominant wall panels
segment to also be
fastest growing

Wall panel products will be the fastest
growing wall coverings type through
2015. Sales of wall panel products will
benefit from the expected recovery in
residential construction activity, coupled
with improving prospects in nonresidential
construction markets. Laminate
panels, in particular sheet panels, will
continue to dominate demand, but
greater growth prospects will emerge for
several products at opposite ends of the
value spectrum. For example, demand
for low cost finished gypsum board
panels will benefit from the long anticipated
recovery in manufactured housing;
while sales of higher-end solid wood
panels will benefit from growth in new
single family housing.

Wallpaper products is projected to be the
second fastest growing wall coverings
segment through 2015. Sales of wallpaper
products have been in decline for
more than a decade, reflecting changes
in consumer preferences away from
wallpaper in favor of paint and coatings.
However, the development of products
such as wallpaper borders, custom
wallpaper and textured wallpaper is
expected to breathe new life into a
previously depressed product category.
Also, advances in wallpaper technology,
which make these products easier to
apply and remove, will expand sales
opportunities. In addition, the more
positive prospects for building construction
in both residential and nonresidential
markets through 2015 will benefit
demand for wallpaper.

Demand for decorative tile wall coverings
is projected to increase at a slightly
slower rate than wallpaper products
through 2015. Gains will derive primarily
from a recovery in new housing construction,
although consumption will also
benefit from accelerating new nonresidential
construction. In addition, the
recovery in construction markets will also
lead to growth in improvement and repair
spending in both residential and nonresidential
markets, supporting increased
demand for ceramic tile in bathroom and
kitchen renovations. Higher-end
products, such as glass tile, will provide
outsized niche growth prospects.

Study Scope

This study analyzes the $1.4 billion US wall covering industry. It presents historical demand data for the years 2000, 2005 and 2010, and forecasts for 2015 and 2020 by product (e.g., laminate panels, solid wood panels, wallpaper, decorative tile), market (e.g., residential, nonresidential) and US region.